Coke eyes cannabis-infused drink market

Coca-Cola says it is mulling beverages infused with CBD or cannabidiol, a nonpsychoactive substance in marijuana that is purported to have health benefits.

"No decisions have been made at this time", the beverage group said, adding that it would not comment on further speculation.

Coca-Cola's statement comes amid reports the company has held talks with Canada'sAurora Cannabis to develop beverages. Constellation Brands, the maker of Corona beer, Svedka vodka and Casa Noble tequila, announced in August that it's investing an additional $4 billion in the Canadian cannabis company Canopy Growth. Coca-Cola certainly wouldn't be the first to develop cannabis drinks, but it would be a big deal given that it's the world's largest beverage company.

Cannabis drinks use cannabidiol (CBD) as an ingredient for wellness drinks. It is believed to have anti-inflammatory, anti-nausea, anti-seizure effects, and because it doesn't make the user intoxicated, CBD products are marketed as having some of the benefits of cannabis without the intoxication.

Canada is set to legalize cannabis on October 17 after both houses of Parliament voted to make the drug available for recreational use.

According to Business Insider, shares of Aurora jumped 15 percent during early Monday trading after the Coca-Cola report broke. Last month Coca-Cola announced that it was buying the Costa Coffee chain in a near-£4bn deal that underlined the growing appeal of the global coffee market.

"We have no interest in marijuana or cannabis", read the company's short and terse sounding statement. Lagunitas, a craft beer label of Heineken, already has a drink infused with THC, which can be purchased at marijuana dispensaries in California.

BNN Bloombergreported that shares in Aurora surged as much as 19% when markets opened Monday, paring gains to about 16% to $9.92 on the Toronto Stock Exchange.

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